Refining capacity drops to 10.83%

No Comments » February 5th, 2008 posted by // Categories: Energy Development Project




Refining capacity drops to 10.83%         5/2/2008

Stories by Emeka Ugwuanyi, Energy Correspondent

WITH the poor state of the nation’s refinaries, the country has continued to depend mostly on imported fuel.

The latest report from the Department of Petroleum Resources (DPR) showed that only 4,046,250 barrels of crude oil was refined in the country during the third quarter of last representing 10.83 per cent of the nation’s refineries’ utilization capacity. The trend has continued in the new year.

Within the period, the Nigerian National Petroleum Corporation (NNPC) also imported products as follows: petrol (PMS) 1,842,086 metric tonnes, diesel (AGO) 541,132 metric tonnes, Dual Purpose Kerosene (DPK) 317,868 metric tonnes and Aviation Turbine Kerosene (ATK) 97,114 metric tonnes.

The DPR hinted that the low level refining capacity was due to shut down of the Warri and Kaduna Refineries while Port Harcourt Refinery, the only functional plant refines below capacity.

The DPR report revealed that in July 848,494 barrels were refined while in August and September 1,408,915 and 1,788,841 barrels were respectively refined representing 10.83 per cent average capacity utilization of the refineries and 22.94 per cent of the Port Harcourt Refinery. The designed throughput for the Port Harcourt Refinery is 210, 000 barrels per day (b/d).

The Kaduna and Warri Refining and Petrochemicals’ Lines 2C, the Department said, were still down due to vandalization and did not operate during the quarter.

The report noted that although 4,046,250 barrels of crude oil were processed within the quarter, 4,382,106 barrels were received reflecting an excess supply of 335856 barrels of unprocessed crude oil. It revealed that receipt in July 1,242,236 barrels while 848,494 barrels were processed. In August and September, the receipts were 1,754,225 and 1,385,645 with 1,408,915 and 1,788,841 barrels processed.

The quantities of product refined within the period include petrol (PMS) 1,788,841 cubic metres Kerosene 85,798 cubic metres and diesel (AGO) 144,383 cubic metres, among others.

The Department said that within the quarter, a total of 19 applications for construction of LPG, lube/oil blending plants were received and processed, in the order of LPG (1), Lube (17) and oil (1).

The Department said it monitored some projects in the period including the EAP-EPC 2B (NGL Pipelines), Gbaran Ubie Integrated Oil and Gas Project, OML 123 Infield Pipeline Engineering Design, Akpo Field Development Project, Amenam/Kpono Oil and Gas Export Project and Amakpe Refinery Project.

In the products retail and marketing, DPR received 785 applications for new and renewal licence. Of the number 536 applications for BB licence came from independent marketers while 134 came from the major marketers. The AA licence applications were 72 while the CC category was 43. The revenue raked from the licence deal the Department said N22,096,200.

During the quarter, the Department inspected 3,483 filling stations in Port Harcourt, Warri, Maiduguri, Kaduna and Federal Capital Territory out of which 324 were sealed for irregularities.

Inspections at the crude oil terminals, depots and jetties revealed that total production for the quarter was 156,575,467 barrels while total lifting was 207,796,631 barrels.

DPR said 265 vessels were processed and cleared for loading of a total nominated quantity of 204,965,800 barrels of crude oil and condensate within the quarter.

The total number of coastal vessels that discharged or lifted petroleum products with clearance within the quarter were 253 and as follows: 82 in July, 94 in August and 77 in September.


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